NEW DELHI: The ban on selling liquor near highways has had an additional fallout: meetings and conferences, which account for a sizeable chunk of the hospitality business, are being cancelled. The Orchid Mumbai Vile Parle, close to the airport, has been served a notice to not sell liquor because of its proximity to the highway. As a result, about six conferences and events planned at The Orchid this month have been cancelled. "Hotels like ours are positioned as business hotels and have facilities in place for conducting such events. This is not just loss of business but loss of face,” said Vishal Kamat, director of the Kamat Group, which owns the hotel.

In the industrial town of Manesar in Gurgaon district, 14 conferences for April alone have been cancelled at the Select Group’s Heritage Village Resort & Spa, which is close to NH8. Arjun Sharma, managing director of the Select Group, said there’s been a 50% drop in upcoming bookings and business enquiries at the resort for the coming months.

"Meetings, conferences and events contribute about 70% to our turnover,” said Sharma. Meetings, incentives, conferences and exhibitions, known as the MICE segment, is a critical revenue generator for hotels and is showing visible signs of distress two weeks after the Supreme Court’s March 31 ban on liquor sales near highways.

Business events and conferences scheduled in hotels and resorts close to highways are getting cancelled and even moving to other countries. A business meeting scheduled at a major Indian hotel chain in Chennai has now moved to Sri Lanka, according to people familiar with the development.

"MICE was becoming an attractive revenue generator for hotels in the face of stagnant average room rates. In state capitals like Delhi, Mumbai and Bengaluru, MICE could constitute 18-20% of the overall business,” said hospitality expert Abhijit Umathe. "F&B operations from MICE is a big revenue driver.”

"We have witnessed cancellations and people are requesting for deferred bookings as well,” said Raj Rana, CEO, South Asia, for Carlson Rezidor, the owner of brands such as Radisson and Radisson Blu in India.

A spokesperson at The Leela Ambience in Gurgaon said there have been a few cancellations and the property is focusing on positioning its new non-alcoholic drinks menu to guests. "Clients are sceptical about bookings for events for the coming months. They want to wait and see,” said Ankur Bhatia, executive director of the Bird Group, which owns the Roseate in New Delhi.

Five-star hotel Feathers - A Radha Hotel on Mount Poonamalee Road in Chennai has banqueting space to serve 1,000 guests and has been getting cancellations this month for events. "Future booking are also not coming through. We have a Rs 110-crore loan which we have to pay to banks. We are wondering what to do,” said R Srinivasan, managing director.

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